National Herald case: Why is Congress quiet on the IT fine of Rs.249.15 cr on Sonia-Rahul company?

Why is Congress keeping quiet on the IT notice of 249 crores?

Why is Congress keeping quiet on the IT notice of 249 crores?
Why is Congress keeping quiet on the IT notice of 249 crores?

The normally loquacious Congress party has been keeping a stony silence on the Demand Notice of Income Tax (IT) Department, levying a fine of Rs.249.15 crores ($38.4 million) on Young Indian. PGurus have accessed the three-page Income Tax Demand Notice and it shows that the tax notice was dated December 27, 2017, giving them up to 30 days to appeal. This notice was sent by the tax department on Young Indian for hushing up taxable income to the tune of Rs.414 crores ($63.8 million).

The tax sleuths demanded Rs.49 crores deposit to entertain the appeal against the Tax demand of Rs.249.15 crores

The 105-page Assessment Order[1] came to the public domain only after the petitioner and BJP leader Subramanian Swamy placed this document in the trial court in his private case on January 20, 2018. Even the lawyers representing Sonia and Rahul Gandhi were caught off-guard by this stunning document exposing more frauds in the National Herald case (see Figure 1).

Income assessment and Demand Notice
Fig 1. Income assessment and Demand Notice

Even after Swamy’s exposé, the Congress leadership has kept silent. Now it is proved that both the IT Assessment Order and the Demand Notice of Rs.249.15 crores were issued on December 27, 2017. This fine came to the public domain only on March 19, 2018, , when Young Indian approached the Delhi High Court against Income Tax. The tax sleuths demanded Rs.49 crores deposit to entertain the appeal against the Tax demand of Rs.249.15 crores. The three-page Income Tax Demand Notice is produced at the end of this article.

In Delhi High Court, Congress leaders pleaded that they have no money. The Young Indian was represented by noted tax lawyer Arvind Datar. The Bench comprising Justices Ravindra Bhat and A K Chawla ordered Young Indian to deposit Rs.10 crores ($1.54 million) to entertain their first appeal to Commissioner of Income Tax[2]. As per the order, Young Indian has to deposit Rs. Five crores ($0.77 million) before March 31 and the balance has to be deposited by April 15.

Young Indian was controversially floated by Sonia Gandhi and Rahul Gandhi in late 2010 to take over the more than Rs.2000 crores-worth ($308.2 million) land and building assets of the defunct National Herald newspaper publishing company Associated Journals. The mother and son are Directors and are having 38 percent shares each in Young Indian. Their trusted persons and Congress leaders Oscar Fernandez and  Motilal Vora are having 12 percent shares in this company now facing Rs.249.15 crore tax dues. The Sonia family’s close aides Suman Dubey and Sam Pitroda are also Directors of this controversial firm[3].

The question is the continued silence of Congress leadership on one of the biggest Income Tax dues. Is Sonia Gandhi thinking of doing some deals to hush-up the Income Tax notice with certain pliable persons in Government?  Why else would Ministry of Finance not allow the Enforcement Directorate (ED) to register a case of money laundering in National Herald? The Central Bureau of Investigation (CBI) has also not been allowed to register a case of land grabbing, of land allotted to National Herald by Young Indian. Maharashtra Government is yet to act on the report of the land grabbed in Bandra[4]. The only action came from Haryana Government[5] and we are seeing so many hit jobs against the Chief Minister Manohar Lal Khattar from several quarters and also by a section of the Dynasty-Slave media houses. These entities create outrage against him and seek his resignation at the drop of a hat. Is this stony silence a plot to make some sort of a deal to hush-up the huge tax dues of Rs.249.15 crores?

PGurus accessed the below published three-page Income Tax Demand notice from the more than 300-page petition of Congress in the Delhi High Court:

Income Tax Demand Notice of Rs.249.15 Cr to Young Indian Dtd Dec 27, 2017 by Sree Iyer on Scribd

1. The conversion rate used in this article is 1 USD = 64.89 Rupees.


[1] National Herald case: Read 105-page IT AO against Young Indian exposing Rs.414 crores gainJan 22, 2018,

[2] National Herald case: Delhi HC orders Young Indian to deposit Rs.10 cr in IT recovery notice of Rs.250 crMar 19, 2018,

[3] Sonia and Rahul object to summoning of documents in National Herald caseSep 10, 2016,

[4] Instead of a Nehru Memorial Library, Congress Bhavan building construction coming on AJL Mumbai plotDec 17, 2015,

[5] National Herald – ED summons Motilal Vora in Panchkula land dealsNov 8, 2016,

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